093_HB3656eng

 
HB3656 Engrossed                     LRB093 09246 JLS 09479 b

 1        AN ACT relating to insurance.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The Illinois Insurance  Code  is  amended  by
 5    changing Section 404.1 as follows:

 6        (215 ILCS 5/404.1) (from Ch. 73, par. 1016.1)
 7        Sec.  404.1.   Safekeeping of deposits.  The Director may
 8    maintain with a corporation qualified to administer trusts in
 9    this State under the  Corporate  Fiduciary  Act  "An  Act  to
10    provide  for  and  regulate  the  administration of trusts by
11    trust companies", approved June 15, 1887, as amended, for the
12    securities deposited with the  Director,  a  limited  agency,
13    custodial,  or  depository  account, or other type of account
14    for the safekeeping of those securities, and  for  collecting
15    the  income  from  those  securities and providing supportive
16    accounting  services  relating  to   such   safekeeping   and
17    collection.    Such   a   corporation,  in  safekeeping  such
18    securities, shall have all the  powers,  rights,  duties  and
19    responsibilities  that  it  has for holding securities in its
20    fiduciary accounts under the Securities in Fiduciary Accounts
21    Act "An Act concerning the powers of corporations  authorized
22    to accept and execute trusts, to register and hold securities
23    of  fiduciary  accounts  in  bulk  and to deposit same with a
24    clearing  corporation",  approved  September  1,   1972,   as
25    amended.    The Director shall arrange with its trust bank to
26    provide for collateralization of any cash accounts  resulting
27    from   the   failure   of  any  depositing  company  to  give
28    instruction regarding the investment of any such cash amounts
29    as provided for by Section 6 of the Public  Funds  Investment
30    Act.
31    (Source: P.A. 83-746.)